Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

published:10 Sep 2015

views:9201

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

published:15 Oct 2012

views:14698

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world.

published:01 Nov 2011

views:9329

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

published:22 Jan 2011

views:24592

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. For example: If the notes have a 20 percent discount and a 5 million dollar cap, and the next round is priced at $5 million, the notes will convert as though they were originally priced at $4 million. However, if the next round is priced at $10 million, the notes will convert at a $5 million price instead of $8 million, as $5 million was the “cap” on the price of the original equity. This allows companies to postpone setting a valuation while protecting the upside of investors to a reasonable extent, as the lower the conversion valuation, the more equity the investor receives.
Learn more at http://www.1000angels.com

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

published:07 May 2015

views:4224

Overview of some of the issues associated with use of convertible notes in capital raising

published:10 Nov 2014

views:327

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three new concepts: cap, discount, and conversion. Interest rates are usually a little higher than traditional loans.
Valuation Cap or Cap refers to the maximum valuation that is accepted as appropriate for both the fund seeker and supplier.
Discount refers to the benefit an investor/lender receives in terms of a lower value of the company’s equity in future rounds of investments. That means that beyond the interest, there is an upside to the investor/lender that chooses to convert to equity by using the money owed by the company to purchase shares at a discounted price that the price accepted in that funding round. The amount of the discount is negotiable, but a good rule of thumb is 20 to 25 percent per annum. This has to be balanced with the cap rate described before. An alternative to discounts are warrants. A warrant is an option to purchase a certain number of shares at a pre-determined price. It is more complicated and less common than discounts as it focuses on the funds that are loaned or invested and less on the new valuation of the company.
Convertible notes are also flexible in the sense that it is an agreement between parties that are less scrutinized than financial institutions. It is fairly common for the parties to make adjustments as the company evolves.

published:31 Jan 2015

views:1536

Brief overview of my thoughts on why convertible notes are a poor choice for investors and entrepreneurs. (Entrepreneurship, Angel Investing)

published:18 Aug 2014

views:465

What is a convertible note? How do convertible notes work? Convertible notes explained with review by leading expert on startups Ross Blankenship (http://angelkings.com/course) who discusses the basics of convertible notes which investors use for as loans that "convert" into equity at a later date according to convertible note documents. You need to understand the basics of this important convertible note agreement...
Some of the questions answered in this video on startups include:
What is a convertible note in business?
What is a convertible promissory note?
What is a convertible loan note?
Is a convertible note a security?
We also teach you the important convertible note document terms that you need to know, including maturity date, equity conversion, how to calculate the equity that is converted based on the valuation; we even compare convertible notes vs. SAFE agreements.
#Startups
#Investing
#ConvertibleNote
#Promissory
#Equity

Convertible

A convertible or cabriolet is an automobile body style that can convert between an open-air mode and an enclosed one, varying in degree and means by model. Convertibles evolved from the earlier phaeton, an open vehicle without glass side windows that may have had removable panels of fabric or other material for protection from the elements.

Historically, a retractable roof consisted of an articulated frame covered with a folding textile-based fabric similar to that on an open carriage evolved into the most common form. A lesser seen detachable hardtop provided a more weatherproof and secure alternative. As technology improved a retractable hardtop which removes and stows its own rigid roof in its trunk appeared, increasingly becoming the most popular form.

A semi-convertible also known as a cabrio coach has a retractable or removable top which retains fully framed windows on its doors and side glass. A landaulet is a semi-enclosed convertible with a fully enclosed front cabin and an open rear, typically with a folding fabric top and roll-down glass all round.

Later life

In 1992, Adelson moved to San Rafael, California to pursue a career in post-production sound engineering. After a period of time and world travel, Adelson moved to San Francisco, California in 1993, pursuing instead a career in Internet infrastructure and entrepreneurism. Adelson met Brenda Shea in May 1994 and they married in June 1996.

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

2:19

PandoHouse Rock: Convertible Notes Explained

PandoHouse Rock: Convertible Notes Explained

PandoHouse Rock: Convertible Notes Explained

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

7:05

Jay Adelson Discusses Convertible Notes

Jay Adelson Discusses Convertible Notes

Jay Adelson Discusses Convertible Notes

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world.

10:40

Convertible Debt

Convertible Debt

Convertible Debt

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

2:00

What is a valuation cap?

What is a valuation cap?

What is a valuation cap?

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. For example: If the notes have a 20 percent discount and a 5 million dollar cap, and the next round is priced at $5 million, the notes will convert as though they were originally priced at $4 million. However, if the next round is priced at $10 million, the notes will convert at a $5 million price instead of $8 million, as $5 million was the “cap” on the price of the original equity. This allows companies to postpone setting a valuation while protecting the upside of investors to a reasonable extent, as the lower the conversion valuation, the more equity the investor receives.
Learn more at http://www.1000angels.com

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

2:10

Convertible notes in capital raising

Convertible notes in capital raising

Convertible notes in capital raising

Overview of some of the issues associated with use of convertible notes in capital raising

2:56

Debt/Equity Funding. Convertible Notes

Debt/Equity Funding. Convertible Notes

Debt/Equity Funding. Convertible Notes

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three new concepts: cap, discount, and conversion. Interest rates are usually a little higher than traditional loans.
Valuation Cap or Cap refers to the maximum valuation that is accepted as appropriate for both the fund seeker and supplier.
Discount refers to the benefit an investor/lender receives in terms of a lower value of the company’s equity in future rounds of investments. That means that beyond the interest, there is an upside to the investor/lender that chooses to convert to equity by using the money owed by the company to purchase shares at a discounted price that the price accepted in that funding round. The amount of the discount is negotiable, but a good rule of thumb is 20 to 25 percent per annum. This has to be balanced with the cap rate described before. An alternative to discounts are warrants. A warrant is an option to purchase a certain number of shares at a pre-determined price. It is more complicated and less common than discounts as it focuses on the funds that are loaned or invested and less on the new valuation of the company.
Convertible notes are also flexible in the sense that it is an agreement between parties that are less scrutinized than financial institutions. It is fairly common for the parties to make adjustments as the company evolves.

3:12

I Don't Do Convertible Notes

I Don't Do Convertible Notes

I Don't Do Convertible Notes

Brief overview of my thoughts on why convertible notes are a poor choice for investors and entrepreneurs. (Entrepreneurship, Angel Investing)

3:54

Convertible Notes - MUST-See Review - How they Work - AngelKings.com

Convertible Notes - MUST-See Review - How they Work - AngelKings.com

Convertible Notes - MUST-See Review - How they Work - AngelKings.com

What is a convertible note? How do convertible notes work? Convertible notes explained with review by leading expert on startups Ross Blankenship (http://angelkings.com/course) who discusses the basics of convertible notes which investors use for as loans that "convert" into equity at a later date according to convertible note documents. You need to understand the basics of this important convertible note agreement...
Some of the questions answered in this video on startups include:
What is a convertible note in business?
What is a convertible promissory note?
What is a convertible loan note?
Is a convertible note a security?
We also teach you the important convertible note document terms that you need to know, including maturity date, equity conversion, how to calculate the equity that is converted based on the valuation; we even compare convertible notes vs. SAFE agreements.
#Startups
#Investing
#ConvertibleNote
#Promissory
#Equity

18:34

FounderCasts: Convertible Notes

FounderCasts: Convertible Notes

FounderCasts: Convertible Notes

Convertible Bonds

Convertible bonds are corporate bonds that investors are able to ‘convert’ to a set number of shares of the issuer’s common stock. So why not just buy the company’s stock in the first place? Watch to learn more.
Questions or Comments?
Have a question or topic you’d like to learn more about? Let us know:
Twitter: @ZionsDirectTV
Facebook: www.facebook.com/zionsdirect
Or leave a comment on one of our videos.
Open an Account:
Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com
Bid in our Auctions:
Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com

5:50

VsCap: How to price a convertible bond

VsCap: How to price a convertible bond

VsCap: How to price a convertible bond

A simple breakdown of two parts of a convertible bond and how you can easily value them.

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Ou...

published: 10 Sep 2015

PandoHouse Rock: Convertible Notes Explained

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

published: 15 Oct 2012

Jay Adelson Discusses Convertible Notes

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tip...

published: 01 Nov 2011

Convertible Debt

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

published: 22 Jan 2011

What is a valuation cap?

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. ...

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

published: 07 May 2015

Convertible notes in capital raising

Overview of some of the issues associated with use of convertible notes in capital raising

published: 10 Nov 2014

Debt/Equity Funding. Convertible Notes

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three ...

published: 31 Jan 2015

I Don't Do Convertible Notes

Brief overview of my thoughts on why convertible notes are a poor choice for investors and entrepreneurs. (Entrepreneurship, Angel Investing)

published: 18 Aug 2014

Convertible Notes - MUST-See Review - How they Work - AngelKings.com

What is a convertible note? How do convertible notes work? Convertible notes explained with review by leading expert on startups Ross Blankenship (http://angelkings.com/course) who discusses the basics of convertible notes which investors use for as loans that "convert" into equity at a later date according to convertible note documents. You need to understand the basics of this important convertible note agreement...
Some of the questions answered in this video on startups include:
What is a convertible note in business?
What is a convertible promissory note?
What is a convertible loan note?
Is a convertible note a security?
We also teach you the important convertible note document terms that you need to know, including maturity date, equity conversion, how to calculate the equity tha...

published: 02 Feb 2017

FounderCasts: Convertible Notes

Convertible Bonds

Convertible bonds are corporate bonds that investors are able to ‘convert’ to a set number of shares of the issuer’s common stock. So why not just buy the company’s stock in the first place? Watch to learn more.
Questions or Comments?
Have a question or topic you’d like to learn more about? Let us know:
Twitter: @ZionsDirectTV
Facebook: www.facebook.com/zionsdirect
Or leave a comment on one of our videos.
Open an Account:
Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com
Bid in our Auctions:
Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com

published: 19 Sep 2014

VsCap: How to price a convertible bond

A simple breakdown of two parts of a convertible bond and how you can easily value them.

published: 08 May 2011

back

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first gene...

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

PandoHouse Rock: Convertible Notes Explained

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of...

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

Jay Adelson Discusses Convertible Notes

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about l...

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world.

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world.

Convertible Debt

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert...

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

What is a valuation cap?

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in t...

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. For example: If the notes have a 20 percent discount and a 5 million dollar cap, and the next round is priced at $5 million, the notes will convert as though they were originally priced at $4 million. However, if the next round is priced at $10 million, the notes will convert at a $5 million price instead of $8 million, as $5 million was the “cap” on the price of the original equity. This allows companies to postpone setting a valuation while protecting the upside of investors to a reasonable extent, as the lower the conversion valuation, the more equity the investor receives.
Learn more at http://www.1000angels.com

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. For example: If the notes have a 20 percent discount and a 5 million dollar cap, and the next round is priced at $5 million, the notes will convert as though they were originally priced at $4 million. However, if the next round is priced at $10 million, the notes will convert at a $5 million price instead of $8 million, as $5 million was the “cap” on the price of the original equity. This allows companies to postpone setting a valuation while protecting the upside of investors to a reasonable extent, as the lower the conversion valuation, the more equity the investor receives.
Learn more at http://www.1000angels.com

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing ...

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

Debt/Equity Funding. Convertible Notes

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it...

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three new concepts: cap, discount, and conversion. Interest rates are usually a little higher than traditional loans.
Valuation Cap or Cap refers to the maximum valuation that is accepted as appropriate for both the fund seeker and supplier.
Discount refers to the benefit an investor/lender receives in terms of a lower value of the company’s equity in future rounds of investments. That means that beyond the interest, there is an upside to the investor/lender that chooses to convert to equity by using the money owed by the company to purchase shares at a discounted price that the price accepted in that funding round. The amount of the discount is negotiable, but a good rule of thumb is 20 to 25 percent per annum. This has to be balanced with the cap rate described before. An alternative to discounts are warrants. A warrant is an option to purchase a certain number of shares at a pre-determined price. It is more complicated and less common than discounts as it focuses on the funds that are loaned or invested and less on the new valuation of the company.
Convertible notes are also flexible in the sense that it is an agreement between parties that are less scrutinized than financial institutions. It is fairly common for the parties to make adjustments as the company evolves.

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three new concepts: cap, discount, and conversion. Interest rates are usually a little higher than traditional loans.
Valuation Cap or Cap refers to the maximum valuation that is accepted as appropriate for both the fund seeker and supplier.
Discount refers to the benefit an investor/lender receives in terms of a lower value of the company’s equity in future rounds of investments. That means that beyond the interest, there is an upside to the investor/lender that chooses to convert to equity by using the money owed by the company to purchase shares at a discounted price that the price accepted in that funding round. The amount of the discount is negotiable, but a good rule of thumb is 20 to 25 percent per annum. This has to be balanced with the cap rate described before. An alternative to discounts are warrants. A warrant is an option to purchase a certain number of shares at a pre-determined price. It is more complicated and less common than discounts as it focuses on the funds that are loaned or invested and less on the new valuation of the company.
Convertible notes are also flexible in the sense that it is an agreement between parties that are less scrutinized than financial institutions. It is fairly common for the parties to make adjustments as the company evolves.

Convertible Notes - MUST-See Review - How they Work - AngelKings.com

What is a convertible note? How do convertible notes work? Convertible notes explained with review by leading expert on startups Ross Blankenship (http://angel...

What is a convertible note? How do convertible notes work? Convertible notes explained with review by leading expert on startups Ross Blankenship (http://angelkings.com/course) who discusses the basics of convertible notes which investors use for as loans that "convert" into equity at a later date according to convertible note documents. You need to understand the basics of this important convertible note agreement...
Some of the questions answered in this video on startups include:
What is a convertible note in business?
What is a convertible promissory note?
What is a convertible loan note?
Is a convertible note a security?
We also teach you the important convertible note document terms that you need to know, including maturity date, equity conversion, how to calculate the equity that is converted based on the valuation; we even compare convertible notes vs. SAFE agreements.
#Startups
#Investing
#ConvertibleNote
#Promissory
#Equity

What is a convertible note? How do convertible notes work? Convertible notes explained with review by leading expert on startups Ross Blankenship (http://angelkings.com/course) who discusses the basics of convertible notes which investors use for as loans that "convert" into equity at a later date according to convertible note documents. You need to understand the basics of this important convertible note agreement...
Some of the questions answered in this video on startups include:
What is a convertible note in business?
What is a convertible promissory note?
What is a convertible loan note?
Is a convertible note a security?
We also teach you the important convertible note document terms that you need to know, including maturity date, equity conversion, how to calculate the equity that is converted based on the valuation; we even compare convertible notes vs. SAFE agreements.
#Startups
#Investing
#ConvertibleNote
#Promissory
#Equity

Convertible Bonds

Convertible bonds are corporate bonds that investors are able to ‘convert’ to a set number of shares of the issuer’s common stock. So why not just buy the comp...

Convertible bonds are corporate bonds that investors are able to ‘convert’ to a set number of shares of the issuer’s common stock. So why not just buy the company’s stock in the first place? Watch to learn more.
Questions or Comments?
Have a question or topic you’d like to learn more about? Let us know:
Twitter: @ZionsDirectTV
Facebook: www.facebook.com/zionsdirect
Or leave a comment on one of our videos.
Open an Account:
Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com
Bid in our Auctions:
Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com

Convertible bonds are corporate bonds that investors are able to ‘convert’ to a set number of shares of the issuer’s common stock. So why not just buy the company’s stock in the first place? Watch to learn more.
Questions or Comments?
Have a question or topic you’d like to learn more about? Let us know:
Twitter: @ZionsDirectTV
Facebook: www.facebook.com/zionsdirect
Or leave a comment on one of our videos.
Open an Account:
Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com
Bid in our Auctions:
Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Ou...

published: 10 Sep 2015

PandoHouse Rock: Convertible Notes Explained

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

published: 15 Oct 2012

Jay Adelson Discusses Convertible Notes

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tip...

published: 01 Nov 2011

Convertible Debt

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

published: 22 Jan 2011

What is a valuation cap?

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. ...

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

published: 07 May 2015

Convertible notes in capital raising

Overview of some of the issues associated with use of convertible notes in capital raising

published: 10 Nov 2014

Debt/Equity Funding. Convertible Notes

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three ...

published: 31 Jan 2015

I Don't Do Convertible Notes

Brief overview of my thoughts on why convertible notes are a poor choice for investors and entrepreneurs. (Entrepreneurship, Angel Investing)

published: 18 Aug 2014

back

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first gene...

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

PandoHouse Rock: Convertible Notes Explained

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of...

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

Jay Adelson Discusses Convertible Notes

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about l...

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world.

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world.

Convertible Debt

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert...

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

What is a valuation cap?

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in t...

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. For example: If the notes have a 20 percent discount and a 5 million dollar cap, and the next round is priced at $5 million, the notes will convert as though they were originally priced at $4 million. However, if the next round is priced at $10 million, the notes will convert at a $5 million price instead of $8 million, as $5 million was the “cap” on the price of the original equity. This allows companies to postpone setting a valuation while protecting the upside of investors to a reasonable extent, as the lower the conversion valuation, the more equity the investor receives.
Learn more at http://www.1000angels.com

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. For example: If the notes have a 20 percent discount and a 5 million dollar cap, and the next round is priced at $5 million, the notes will convert as though they were originally priced at $4 million. However, if the next round is priced at $10 million, the notes will convert at a $5 million price instead of $8 million, as $5 million was the “cap” on the price of the original equity. This allows companies to postpone setting a valuation while protecting the upside of investors to a reasonable extent, as the lower the conversion valuation, the more equity the investor receives.
Learn more at http://www.1000angels.com

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing ...

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

Debt/Equity Funding. Convertible Notes

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it...

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three new concepts: cap, discount, and conversion. Interest rates are usually a little higher than traditional loans.
Valuation Cap or Cap refers to the maximum valuation that is accepted as appropriate for both the fund seeker and supplier.
Discount refers to the benefit an investor/lender receives in terms of a lower value of the company’s equity in future rounds of investments. That means that beyond the interest, there is an upside to the investor/lender that chooses to convert to equity by using the money owed by the company to purchase shares at a discounted price that the price accepted in that funding round. The amount of the discount is negotiable, but a good rule of thumb is 20 to 25 percent per annum. This has to be balanced with the cap rate described before. An alternative to discounts are warrants. A warrant is an option to purchase a certain number of shares at a pre-determined price. It is more complicated and less common than discounts as it focuses on the funds that are loaned or invested and less on the new valuation of the company.
Convertible notes are also flexible in the sense that it is an agreement between parties that are less scrutinized than financial institutions. It is fairly common for the parties to make adjustments as the company evolves.

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three new concepts: cap, discount, and conversion. Interest rates are usually a little higher than traditional loans.
Valuation Cap or Cap refers to the maximum valuation that is accepted as appropriate for both the fund seeker and supplier.
Discount refers to the benefit an investor/lender receives in terms of a lower value of the company’s equity in future rounds of investments. That means that beyond the interest, there is an upside to the investor/lender that chooses to convert to equity by using the money owed by the company to purchase shares at a discounted price that the price accepted in that funding round. The amount of the discount is negotiable, but a good rule of thumb is 20 to 25 percent per annum. This has to be balanced with the cap rate described before. An alternative to discounts are warrants. A warrant is an option to purchase a certain number of shares at a pre-determined price. It is more complicated and less common than discounts as it focuses on the funds that are loaned or invested and less on the new valuation of the company.
Convertible notes are also flexible in the sense that it is an agreement between parties that are less scrutinized than financial institutions. It is fairly common for the parties to make adjustments as the company evolves.

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Ou...

published: 10 Sep 2015

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

Convertible Notes for Startups with Mintz Levin

Hear the emerging growth advisors and creators of Mintz Levin's MintzEdge program (mintzedge.com), Daniel DeWolf and Samuel Effron, discuss the ins and outs of convertible notes for startups, including the advantages and disadvantages from a legal and funding perspective.
Dan DeWolf is Co-chair of Mintz Levin's Venture Capital & Emerging Companies PracticeGroup and Chair of their Technology Practice Group. In addition to his active legal practice, he is an adjunct professor of law at the NYU Law School and has a wealth of experience in private equity and venture capital, having co-founded DawntreaderVentures, an early stage venture capital firm based in New York.
Sam Effron is a Senior Associate in the Venture Capital & Emerging Companies Practice Group and Technology Practice Group. Sam...

published: 21 Apr 2017

How Convertible Notes Work, Part 2

In this webinar, EGFS Consultant CFO Sirk Roh and Kevin Smith of SEEDCHANGE sit down with us to review the basics of ConvertibleNotes, as well as answer as many attendee questions we could fit into an hour.

"Convertible Debt 101" with Jeff Canin

Financial services and venture capital expert, Jeff Canin, gives an overview of the variety of financing options available to start-ups, then discusses the specific terms and features of a convertible note.

published: 02 May 2014

Convertible debt Investors Option A15 8

published: 11 Mar 2015

back

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first gene...

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing ...

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

Convertible Notes for Startups with Mintz Levin

Hear the emerging growth advisors and creators of Mintz Levin's MintzEdge program (mintzedge.com), Daniel DeWolf and Samuel Effron, discuss the ins and outs of ...

Hear the emerging growth advisors and creators of Mintz Levin's MintzEdge program (mintzedge.com), Daniel DeWolf and Samuel Effron, discuss the ins and outs of convertible notes for startups, including the advantages and disadvantages from a legal and funding perspective.
Dan DeWolf is Co-chair of Mintz Levin's Venture Capital & Emerging Companies PracticeGroup and Chair of their Technology Practice Group. In addition to his active legal practice, he is an adjunct professor of law at the NYU Law School and has a wealth of experience in private equity and venture capital, having co-founded DawntreaderVentures, an early stage venture capital firm based in New York.
Sam Effron is a Senior Associate in the Venture Capital & Emerging Companies Practice Group and Technology Practice Group. Sam's law practice is focused on development of emerging growth companies, fund formation and crowdfunding platforms, and his pre-law experience as a project manager for a digital media agency and as an early employee of a successful start-up informs his legal perspective.

Hear the emerging growth advisors and creators of Mintz Levin's MintzEdge program (mintzedge.com), Daniel DeWolf and Samuel Effron, discuss the ins and outs of convertible notes for startups, including the advantages and disadvantages from a legal and funding perspective.
Dan DeWolf is Co-chair of Mintz Levin's Venture Capital & Emerging Companies PracticeGroup and Chair of their Technology Practice Group. In addition to his active legal practice, he is an adjunct professor of law at the NYU Law School and has a wealth of experience in private equity and venture capital, having co-founded DawntreaderVentures, an early stage venture capital firm based in New York.
Sam Effron is a Senior Associate in the Venture Capital & Emerging Companies Practice Group and Technology Practice Group. Sam's law practice is focused on development of emerging growth companies, fund formation and crowdfunding platforms, and his pre-law experience as a project manager for a digital media agency and as an early employee of a successful start-up informs his legal perspective.

In this webinar, EGFS Consultant CFO Sirk Roh and Kevin Smith of SEEDCHANGE sit down with us to review the basics of ConvertibleNotes, as well as answer as many attendee questions we could fit into an hour.

In this webinar, EGFS Consultant CFO Sirk Roh and Kevin Smith of SEEDCHANGE sit down with us to review the basics of ConvertibleNotes, as well as answer as many attendee questions we could fit into an hour.

"Convertible Debt 101" with Jeff Canin

Financial services and venture capital expert, Jeff Canin, gives an overview of the variety of financing options available to start-ups, then discusses the spec...

Financial services and venture capital expert, Jeff Canin, gives an overview of the variety of financing options available to start-ups, then discusses the specific terms and features of a convertible note.

Financial services and venture capital expert, Jeff Canin, gives an overview of the variety of financing options available to start-ups, then discusses the specific terms and features of a convertible note.

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

PandoHouse Rock: Convertible Notes Explained

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

7:05

Jay Adelson Discusses Convertible Notes

Today Jay explains what a convertible note is in an early funding round along with why to ...

Jay Adelson Discusses Convertible Notes

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world.

10:40

Convertible Debt

What is convertible debt and how is it used in a basic way? How does it avoid the valuatio...

Convertible Debt

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

2:00

What is a valuation cap?

A valuation cap is something that applies to convertible notes. A convertible note is a se...

What is a valuation cap?

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. For example: If the notes have a 20 percent discount and a 5 million dollar cap, and the next round is priced at $5 million, the notes will convert as though they were originally priced at $4 million. However, if the next round is priced at $10 million, the notes will convert at a $5 million price instead of $8 million, as $5 million was the “cap” on the price of the original equity. This allows companies to postpone setting a valuation while protecting the upside of investors to a reasonable extent, as the lower the conversion valuation, the more equity the investor receives.
Learn more at http://www.1000angels.com

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

2:10

Convertible notes in capital raising

Overview of some of the issues associated with use of convertible notes in capital raising...

Debt/Equity Funding. Convertible Notes

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three new concepts: cap, discount, and conversion. Interest rates are usually a little higher than traditional loans.
Valuation Cap or Cap refers to the maximum valuation that is accepted as appropriate for both the fund seeker and supplier.
Discount refers to the benefit an investor/lender receives in terms of a lower value of the company’s equity in future rounds of investments. That means that beyond the interest, there is an upside to the investor/lender that chooses to convert to equity by using the money owed by the company to purchase shares at a discounted price that the price accepted in that funding round. The amount of the discount is negotiable, but a good rule of thumb is 20 to 25 percent per annum. This has to be balanced with the cap rate described before. An alternative to discounts are warrants. A warrant is an option to purchase a certain number of shares at a pre-determined price. It is more complicated and less common than discounts as it focuses on the funds that are loaned or invested and less on the new valuation of the company.
Convertible notes are also flexible in the sense that it is an agreement between parties that are less scrutinized than financial institutions. It is fairly common for the parties to make adjustments as the company evolves.

3:12

I Don't Do Convertible Notes

Brief overview of my thoughts on why convertible notes are a poor choice for investors and...

Convertible Notes - MUST-See Review - How they Work - AngelKings.com

What is a convertible note? How do convertible notes work? Convertible notes explained with review by leading expert on startups Ross Blankenship (http://angelkings.com/course) who discusses the basics of convertible notes which investors use for as loans that "convert" into equity at a later date according to convertible note documents. You need to understand the basics of this important convertible note agreement...
Some of the questions answered in this video on startups include:
What is a convertible note in business?
What is a convertible promissory note?
What is a convertible loan note?
Is a convertible note a security?
We also teach you the important convertible note document terms that you need to know, including maturity date, equity conversion, how to calculate the equity that is converted based on the valuation; we even compare convertible notes vs. SAFE agreements.
#Startups
#Investing
#ConvertibleNote
#Promissory
#Equity

Convertible Bonds

Convertible bonds are corporate bonds that investors are able to ‘convert’ to a set number of shares of the issuer’s common stock. So why not just buy the company’s stock in the first place? Watch to learn more.
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5:50

VsCap: How to price a convertible bond

A simple breakdown of two parts of a convertible bond and how you can easily value them.

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

PandoHouse Rock: Convertible Notes Explained

Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The ExplainerMusic team breaks it all down in its latest video.

7:05

Jay Adelson Discusses Convertible Notes

Today Jay explains what a convertible note is in an early funding round along with why to ...

Jay Adelson Discusses Convertible Notes

Today Jay explains what a convertible note is in an early funding round along with why to consider offering them to investors or not.
Have a question about launching a business that you want answered? Comment or add a video response!
Jay Adelson's Twitter:
http://www.twitter.com/jayadelson
Email Your Questions:
askjay@revision3.com
Never Miss An Episode! Subscribe Here:
http://www.youtube.com/subscription_center?add_user=askjayadelson
Check Out The YouTube Channel:
http://www.youtube.com/askjayadelson
Facebook:
http://www.facebook.com/askjayadelson
More AskJay Episodes:
http://www.revision3.com/askjay
About Ask Jay:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world.

10:40

Convertible Debt

What is convertible debt and how is it used in a basic way? How does it avoid the valuatio...

Convertible Debt

What is convertible debt and how is it used in a basic way? How does it avoid the valuation question? If it defers the valuation discussion, how does it convert into equity and under what circumstances? What is the discount rate and what does that mean? How does this effect ownership percentages?

2:00

What is a valuation cap?

A valuation cap is something that applies to convertible notes. A convertible note is a se...

What is a valuation cap?

A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. For example: If the notes have a 20 percent discount and a 5 million dollar cap, and the next round is priced at $5 million, the notes will convert as though they were originally priced at $4 million. However, if the next round is priced at $10 million, the notes will convert at a $5 million price instead of $8 million, as $5 million was the “cap” on the price of the original equity. This allows companies to postpone setting a valuation while protecting the upside of investors to a reasonable extent, as the lower the conversion valuation, the more equity the investor receives.
Learn more at http://www.1000angels.com

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

2:10

Convertible notes in capital raising

Overview of some of the issues associated with use of convertible notes in capital raising...

Debt/Equity Funding. Convertible Notes

A hybrid or a bridge between debt and equity is a convertible note. On the surface it works as an incredible loan that beats the odds of debt funding because it does not comply with the requisite of certainty. Who are the crazy lenders of convertible debt? Investors. We love it! It is an excellent way to manage the uncertainty and cost to estimate a company’s valuation. It does not mean that it reduces the risk or eliminates the due diligence process. Yet it makes a lot of sense when both parties – fund seeker and provider- want to shift the discussion on valuation to a later round of investment, when the company is more credible and when new funds are expected.
Convertible notes provide an agreement that defines the amount of capital provided to the company, the interest rate, and three new concepts: cap, discount, and conversion. Interest rates are usually a little higher than traditional loans.
Valuation Cap or Cap refers to the maximum valuation that is accepted as appropriate for both the fund seeker and supplier.
Discount refers to the benefit an investor/lender receives in terms of a lower value of the company’s equity in future rounds of investments. That means that beyond the interest, there is an upside to the investor/lender that chooses to convert to equity by using the money owed by the company to purchase shares at a discounted price that the price accepted in that funding round. The amount of the discount is negotiable, but a good rule of thumb is 20 to 25 percent per annum. This has to be balanced with the cap rate described before. An alternative to discounts are warrants. A warrant is an option to purchase a certain number of shares at a pre-determined price. It is more complicated and less common than discounts as it focuses on the funds that are loaned or invested and less on the new valuation of the company.
Convertible notes are also flexible in the sense that it is an agreement between parties that are less scrutinized than financial institutions. It is fairly common for the parties to make adjustments as the company evolves.

3:12

I Don't Do Convertible Notes

Brief overview of my thoughts on why convertible notes are a poor choice for investors and...

What is a Convertible Note? Startups 101 - Robert Neivert, 500 Startups

Learn how to build your company from experts at 500 Startups and Galvanize.
Sign up for upcoming workshops at http://galvanize.com/events.
So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do.
About Galvanize
--------------------------
Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive.
Follow Galvanize
---------------------------
http://www.facebook.com/GalvanizeHQ
http://www.twitter.com/galvanize

1:09:06

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups...

How Convertible Notes Work

Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from EarlyGrowthFinancial Services (www.egfs.co) where they explore how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!

1:04:24

How Convertible Notes Work, Part 1

In the first of a two-part series of webinars focused on Convertible Notes, Kevin Smith, C...

Convertible Notes for Startups with Mintz Levin

Hear the emerging growth advisors and creators of Mintz Levin's MintzEdge program (mintzedge.com), Daniel DeWolf and Samuel Effron, discuss the ins and outs of convertible notes for startups, including the advantages and disadvantages from a legal and funding perspective.
Dan DeWolf is Co-chair of Mintz Levin's Venture Capital & Emerging Companies PracticeGroup and Chair of their Technology Practice Group. In addition to his active legal practice, he is an adjunct professor of law at the NYU Law School and has a wealth of experience in private equity and venture capital, having co-founded DawntreaderVentures, an early stage venture capital firm based in New York.
Sam Effron is a Senior Associate in the Venture Capital & Emerging Companies Practice Group and Technology Practice Group. Sam's law practice is focused on development of emerging growth companies, fund formation and crowdfunding platforms, and his pre-law experience as a project manager for a digital media agency and as an early employee of a successful start-up informs his legal perspective.

1:01:00

How Convertible Notes Work, Part 2

In this webinar, EGFS Consultant CFO Sirk Roh and Kevin Smith of SEEDCHANGE sit down with ...

How Convertible Notes Work, Part 2

In this webinar, EGFS Consultant CFO Sirk Roh and Kevin Smith of SEEDCHANGE sit down with us to review the basics of ConvertibleNotes, as well as answer as many attendee questions we could fit into an hour.

"Convertible Debt 101" with Jeff Canin

Financial services and venture capital expert, Jeff Canin, gives an overview of the variety of financing options available to start-ups, then discusses the specific terms and features of a convertible note.

"Convertible Debt 101" with Jeff Canin...

Convertible debt Investors Option A15 8...

When the sun dims dramatically Monday morning, that would be like an entire power plant unit shutting down for the Lone Star State's electricity grid. The much-anticipated solar eclipse will wipe out about 600 megawatts worth of electricity generation from Texas' growing solar power industry, according to officials with ERCOT, which manages the Texas grid.&nbsp; ... "That is not very much," she said about eclipse's influence ... ....

Multiple media reports Thursday reported a van crashed into dozens of people in the center of Barcelona Thursday killing two and injuring several people. Local Spanish media say two armed men have entered a restaurant after a van crashed into a crowd of people, according to Reuters, and police consider the incident to be terror related. Local media reports say two people were killed instantly when struck by the van....

The number of asylum seekers who are illegally crossing into Canada from the United States more than tripled last month, according to new data released on Thursday by the Canadian government which hints at the deep fears that migrants have about the recent U.S. administration immigration crackdown ...The RoyalCanadian Mounted Police said that an additional 3,800 asylum seekers were arrested crossing the U.S ... "It's not a crisis ... ....

The Guardian reported that police announced one person was arrested in relation to the attack on Thursday where someone drove a white van through the busy, pedestrian area of Las Ramblas in Barcelona, Spain which has left at least 13 dead, and more than 50 injured ...Police said that the number of the dead was "bound to rise" since at least 50 people were injured after the attack, interior minister for Catalonia, Joaquim Form said ... ... U.S....

The top two officers and the top enlisted sailors who were in charge when the USS Fitzgerald had a collision on June 17 that killed seven crew members will face disciplinary measures after seven crew members died from the incident, a senior Navy official said on Thursday. The Washington Post reported that Adm. William F ... The discipline varies but will include likely career-ending actions against the ship's captain at the time, Cmdr....

Late chief minister J Jayalalithaa's niece J Deepa has opposed the Tamil Nadu government's plans to convert her aunt's residence here into a memorial, saying she would take legal steps against it ... and convert her 'Veda Nilayam' residence into a memorial....

Late chief minister Jayalalithaa's niece J Deepa on Thursday opposed the Tamil Nadu government's plans to convert her aunt's residence&nbsp;in Chennai into a memorial, saying she would take legal steps against it....

He also announced that Jayalalithaa's Poes Garden residence here would be converted into a memorial ... He also announced that Jayalalithaa's Poes Garden residence here would be converted into a memorial ... "A retired Madras High Court judge will head the inquiry commission ... Jayalalithaa's niece J Deepa, however, opposed the move to convert her aunt's residence into a memorial ... It is our ancestral property ... G Jagannath. ....

It was Winnipeg's (6-2) second win against a CFL West Division opponent ... After Hugh O'Neill went wide on convert attempt, the Bombers were only up 30-23 ... Medlock also hit field goals from 22, 24 and 15 yards and was good on three converts ... O'Neill missed a 40-yard field-goal attempt, but connected on one from 31 and made a pair of converts ... Medlock had to boot a 42-yard convert following a Winnipeg holding penalty ... ....

Government leaders in Kentucky's second-largest city took a decisive stand Thursday night in favor of moving two Confederate statues from their prominent places outside a former courthouse being converted into ... ....

Colorado Springs Switchbacks FC went into Saturday’s game against Real Monarchs on a tear, scoring 10 goals in a three-game win streak ... The Switchbacks allowed a pair of goals off set pieces in the first 15 minutes and failed to convert a second-half penalty kick against the Western Conference leaders in Rio Tinto. “I took a lot of positives out of the game last week,” Switchbacks coach Steve Trittschuh said ... ....

Tamil Nadu chief minister E Palaniswamy said on Thursday that a judicial commission will probe the death of former chief minister J Jayalalithaa. The probe commission will be constituted under a retired judge, whose name will be announced later ... Poes garden will be converted into a memorial for Amma ... The chief minister also said that Jayalalithaa's Poes garden bungalow will be converted into a memorial and will be open to the public ... ....

At a separate event, Mustapha donated 100 prayer mats for the use of Kg PakPhu Mosque congregation, as well as handed out 100 pieces of telekung to religious school students, the underprivileged and converts... -- BERNAMA. ....

I urge everyone and specially our youths to watch this documentary to glimpse the history and learn some lessons from it ... It tells us about a massive ethnic cleansing when thousands of Muslims were forcefully converted to Christianity, almost a million books in Arabic were destroyed and thousands of Muslims were expelled from Spain ... NaseemKhan ... ....

– We’re in the final week of our summer series Goin’ to the Lake, and this week, Mark Rosen and Ali Lucia are in Amery, Wis. It just more than an hour from the Twin Cities to get there, so it’s perfect for a weekend getaway or even a day trip. It is a very tight-knit community ... But the story behind this converted Hardees is special ... ....

LONDON... US gold futures for December delivery gained 0.6pc to $1,290.60 an ounce ... The metal, used in the auto industry for emissions-controlling catalytic converters, was being carried higher by a strong rally in industrial metals such as copper and aluminum this week, said Dominic Schnider at UBS Wealth Management in Hong Kong ... ....